The bulls are trying to recover from Tuesday’s drubbing and have done a good job of holding positive territory today. However, there has been a little red and the gains have been marginal as the bears still look hungry. Tech has been the weakest index but there are some bright spots.
Shares of Facebook (FB, $23.43, up $3.93) are getting a 20% lift today after posting better-than-expected revenue results. The company matched earnings per share of $0.11 but revenue came in at $1.26 billion versus estimates for $1.22 billion and Zuckerberg said all the right things on the conference call which we were impressed with. Advertising revenue came in at $1.1 billion with $150 million coming from mobile, or roughly 15%. With the smartphone market continuing to grow, this was a good show for Facebook.
We were hoping shares would come down to the mid-teens after the earnings announcement and where we are considering adding the stock to our Weekly Wrap covered call portfolio. However, given today’s bounce, we will have to wait or buy it at current levels. We don’t like to chase so we will wait but it was a solid quarter by Facebook.
We closed out another winning trade for the Weekly Wrap earlier this week to run our 2012 Track record to 25-0. Last year, we were 16-0 for the newsletter. We are riding a perfect record and a 41-trade win streak for the publication and in the last 2 years, you could have turned $10,000 into $18,000 trading our recommendations. This is an 80% return playing options in a “safer” way.
As far as our Daily newsletter, we have action to take on 2 more trades that are currently showing gains of 71% and 79% and we had another trade stopped out for an 80% win. On that note, we need to roll as we update our current trades inside the Members Area. We said this week would be a busy and fast-paced so let’s go ring the register!
As we head to press, the Dow is up 10 points to 13,110 while the S&P is lower by a half-point to 1,412. The Nasdaq is off 5 points to 2,985.
We will be back in the morning with more earnings news and possible new recommendations.